EU14L1

  • 1

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    The demand for a factor of production, not for its own sake, but for use in the production of goods and services is called a _______________.

    goods and services demand
    derived demand
    factor demand
    production demand

  • 2

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    Marginal revenue product is the ________________ when one additional worker is employed, all other things remaining the same.

    change in marginal revenue
    change in total revenue
    total revenue
    marginal revenue

  • 3

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    The firm's demand for labour is derived from __________.

    the firm's marginal cost
    labour's marginal revenue product
    the firm's marginal revenue
    labour's cost

  • 4

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    To maximize profit, a firm hires the quantity of labour that makes the ______________________.

    marginal product of labour equal to its marginal revenue
    marginal revenue product of labour equal to the wage rate
    marginal product of labour equal to the total labour cost
    total revenue from labour equal to the total cost of labour

  • 5

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    People allocate their time between ___________________.

    sleep, work, and supplying labour
    supplying labour and doing all sorts of other things
    sleep and work
    labour and work

  • 6

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    A household's reservation wage is the ___________________________.

    wage rate at which the household's income equals the costs of working
    wage rate at which the household's income is largest
    lowest wage rate at which the household will supply labour
    wage at which the household's labour supply curve bends backward

  • 7

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    The net present value of capital is equal to its _____________________________.

    marginal revenue product minus its cost
    future flow of marginal revenue product
    future flow of marginal revenue minus its cost
    future flow of marginal revenue product minus its cost

  • 8

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    The supply of capital is the relationship between the quantity of capital supplied and the _______________, other things remaining the same.

    rental rate
    price in dollars
    interest rate
    price level

  • 9

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    _______ natural resources are resources that can be used repeatedly, and _______ natural resources are resources that can be used only once.

    Exhaustible; non-exhaustible
    Non-fossil; fossil
    Renewable; hydrocarbon
    Non-exhaustible; exhaustible

  • 10

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    The income received by the owner of a factor of production over and above the amount required to induce that owner to offer the factor for use is called ______________.

    the rental rate
    opportunity cost
    economic rent
    the wage rate

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